For a Two-Stock Portfolio, What Would Be the Preferred Correlation

question 18

Multiple Choice

For a two-stock portfolio, what would be the preferred correlation coefficient between the two stocks?

• A)+1.00
• B)+0.50
• C)0.00
• D)-1.00

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Source

The origin or starting point of something, such as a signal in an electronic system or data in computing.

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A code that indicates the location of data to be used by a program, or the location of additional program instructions.

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Information processed or stored by a computer. This can be in the form of text, numbers, photos, audio, and other types.

Data Transfer

The process of moving data between devices, systems, or within parts of a system, crucial for information sharing and system functionality.